Thursday, March 09, 2006

Frames, Overconfidence, and Anchors

In my last post, I mentioned the Wharton Executive Management training that I am currently enrolled in. Needless to say, it has been an amazing week. My expectations around the training were that we would be receiving people management training. Of course, those expectations were wrong. Actually, we will do organizational management training tomorrow, but so far, the training has focused on other parts of the support and services business.

Day 1 revolved around expectations, uncertainties, and how both effect our business. It was a mind opener, as we learned that most people are incredibly overconfident in what they believe to be facts. Additionally, our attitudes and beliefs are based on frames (the external stimuli that effect the way we interpret information) and anchors. An anchor is the way in which we often come to conclusions based on what we've been exposed to.

Day 2 was all about negotiations. Interestingly enough, we negotiate all the time, whether at work or at home. The take away was that through exhaustive preparation, practice and active listening, we can improve the outcomes of our negotiations.

Day 3 was financial analysis. I learned more in a full day session this week than in the first 6 weeks in my accounting course at UTD. Did you know that a dollar today will probably be worth only 90 cents next year?

Day 4 (today) was about customer value. Customers are assets, and some are more valuable than others. Interesting stuff. Now I know what LTVC (Life Time Value of the Customer) is and how to measure it. The interesting thing is that we can effect each and every variable within the equation.

Tomorrow - people and organizational management. I knew it would be in there somewhere.


No comments: